What is the break-even level of output? b.) If the firm sells 1300 units what are its earnings or losses? c.) If sales rise to 2,300 units, what are the firm's earnings or losses?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter16: Capital Structure Decisions
Section: Chapter Questions
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Given the following information, answer the following questions.

TR = $4.5Q

TC = $3,500 + $2Q

a.) What is the break-even level of output?

b.) If the firm sells 1300 units what are its earnings or losses?

c.) If sales rise to 2,300 units, what are the firm's earnings or losses?

 

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